Standard Terms of Engagement

 This document details our Standard Terms of Engagement for providing professional services to clients required under the Accounting Professional and Ethical Standards Board APES 305 – Terms of Engagement and the Tax Agent Services Act 2009.

 

Objectives and Scope of the Engagement

1. We will conduct our professional accounting and taxation services in accordance with the relevant professional and ethical standards issued by the Accounting Professional and Ethical Standards Board Limited (APESB).
2. Our services are limited for professional accounting and taxation services only, we will not perform any audit or review and accordingly, no assurance be expressed.
3. The disclosure of irregularities including fraud or other illegal acts or errors that may exist cannot be relied upon by this engagement. Any such matters that come to our attention in this regard will be communicated to you.
4. We make no assumption of responsibility for reliance on our final reports by any person or entity other than you and the parties indicated in the final reports. The documents produced by us shall not be used for any purpose other than the purpose for which they were prepared, and our final reports will include a disclaimer to this effect.
5. Any advice provided to you by our firm is only an opinion based on our firm’s knowledge of your particular circumstances.

 

Professional Services Relating to Taxation Services

6. Under the Accounting Professional and Ethical Standards Board APES 220 –Taxation Services a member in public practice shall provide a client with a statement in writing that:

• The responsibility for the accuracy and completeness of the particulars and information provided by the client rests with the client;
• Any advice given to the client is only an opinion based on the member’s knowledge of the client’s particular circumstances; and
• A taxpayer has obligations under self-assessment to keep full and proper records in order to facilitate the preparation of accurate returns.

7. The Taxation Administration Act 1953 contains specific provisions that may provide you with “safe harbours” from administrative penalties for incorrect or late lodgement of returns if, amongst other things, you give us “all relevant taxation information” in a timely manner (the safe harbour provisions apply from 1 March 2010). Accordingly, it is to your advantage that all relevant information is disclosed to us as any failure by you to provide this information may affect your ability to rely on the “safe harbour” provisions and will be taken into account in determining the extent to which we have discharged our obligations to you.

 

 

Your Responsibilities

8. You are responsible for the accuracy and comprehensiveness of the details and information you provide to us.
9. You have obligations under the Income Tax Assessment Act 1936 to keep full and roper records in order to facilitate the preparation of accurate returns.
10. You are responsible for providing us with your information in a timely manner to ensure we are able to complete your work by the due date.

 

Rights and Obligations

11. The Tax Agents Services Act 2009 requires us to advise you of your rights and obligations where we are acting for you on taxation matters. In relation to the taxation services provided:

• You are responsible for making all relevant information available to us in a complete and timely manner.
• Australia’s income tax and indirect tax system is based on a self-assessment. The Commissioner is entitled to rely on any statements made. Where those statements are later found to be incorrect, the Commissioner may amend your assessments and, in addition to any tax assessed, you may also be liable for penalties and interest charges. The period of review can be up to four years although there are some exceptions to this. Where the Commissioner forms an opinion of fraud or evasion, there is no limit for amending assessments.
• You are responsible for the accuracy and completeness of the particulars and information required to comply with the various taxation laws. We will use the information supplied in the preparation of your returns.
• You have an obligation to keep proper records that will substantiate the taxation returns prepared and satisfy the substantiation requirements of the various tax laws for at least 5 years. Failure to keep such records could result in claims being disallowed, additional tax being imposed, and the imposition of penalty or general interest charges.
• Your rights as a taxpayer include:
  a. The right to seek a private ruling;
  b. The right to object to an assessment by the Commissioner; and
  c. The right to appeal against an adverse decision by the Commissioner.

12. Certain time limitations may exist for you to exercise these rights. Should you wish to exercise these rights at any time you should contact us so that we can provide you with the relevant time frames and to discuss any additional requirements that may exist.

 

Our Responsibilities

13. Information acquired by us in the course of this engagement is subject to strict confidentiality requirements and we will not disclose that information to other parties except as required or allowed by law, or with your written or verbal consent.
14. We are bound by the Tax Agents Services Act 2009 Code of Professional Conduct which includes a duty to act lawfully and in the best interests of our clients, ensure the services we perform are provided competently and in a timely manner, ensure that returns and other statements are lodged in a timely manner, maintain our knowledge and skills, take reasonable care in ascertaining the state of your affairs where it is relevant to the work we are completing, and take reasonable care to ensure the tax laws are applied correctly.

 

Correction of Incorrect or Misleading Statements

15. The Tax Agents Services Act 2009 Code of Conduct prohibits us from making a statement to the Tax Commissioner or other government agency that we know, or ought to know, is false, incorrect or misleading, or incorrect or misleading by omission. If we become aware that a statement is materially incorrect, we are obligated at law to either correct it or advise you that the statement should be corrected. If the statement is not corrected within a reasonable time, we are obligated to report this misstatement to the relevant authority.

Non-compliance with Laws or Regulations

16. Where we suspect there may be non-compliance with laws or regulations, we are required under APES 110 issued by the Accounting Professional & Ethical Standards Board to consider this matter. This may involve making further enquiries, considering the position, and taking what we consider to be appropriate actions, with the objective being to rectify, remediate or mitigate the consequences of the non-compliance. This extends to a public interest duty as defined by APES 110.

 

Complaints

17. We are committed to providing quality services to our clients. This commitment extends to providing a complaints resolution mechanism for our clients. If you have a complaint about the services delivered to you, in the first instance, please contact the responsible managing director. If your matter is not resolved, you have the right to make a complaint to the Tax Practitioners Board: https://www.tpb.gov.au/complaints.

 

Treatment of Tax Refunds

18. We do not operate a trust account. Any tax refunds owing will be directed to the applicable nominated bank account of that entity or individual. The ATO will be advised of the nominated account for the payment of refunds.

 

Fees

19. In accordance with our quality assurance procedures, our estimated fee for:
    a. new clients – will be provided at the beginning of our assignment; and
    b. existing clients – the estimated fee for the current year’s compliance and recurring work will be based on the prior year’s compliance and recurring fee plus 5% unless by prior agreement between parties.
20. Our estimated fee is based upon the information we have to hand regarding your affairs. The actual fee will depend upon the length and complexity of the work required and excludes miscellaneous expenses incurred to complete this engagement. However, if we become aware during the assignment of the fee materially exceeding the estimate, we will contact you to discuss the matter.
21. We will keep you advised regarding the status of the assignment and your ongoing fees for our services.
22. Before the commencement of your work, you will need to provide us with your credit card details, and you authorise us to charge the credit card 14 days after the invoice date if the invoice remains outstanding at that time. If you choose not to provide us with a credit card, we will require payment in full before starting your tax compliance work.
23. Our Terms of Payment are net 14 days from invoice date. We reserve the right to charge interest at the rate of 2.5% per month on any invoice outstanding for more than 30 days.
24. We reserve the right to advise credit agencies for non-payment of invoices exceeding 90 days from invoice date.

 

Limitation of Liability

25. Our liability is limited by a scheme approved by Professional Standards legislation. Further information on the scheme is available from the Professional Standards Council’s website http://www.professionalstandardscouncil.gov.au.

 

Offshore Services

26. Our firm utilises the services of our own 100% subsidiary company Clarity CA (Philippines) Inc. based in Philippines. At times, we will utilise this service as part of the preparation of financial statements and income tax returns and general administration. All work is monitored, reviewed and completed by us. By engaging our services, you accept the use of our offshore services business.

 

Ownership of Documents

27. All original documents obtained from you in respect to this engagement shall remain your property. However, we reserve the right to make copies of the original documents for our records.
28. Ownership of the final documentation and reports produced by us as part of this engagement will vest in you. All other documentation and working papers produced by us in respect of the engagement will remain the property of the firm.
29. In the event of a dispute, the firm has a policy of exploring a legal right of lien over any client documents in our possession.

 

Data Storage

30. We utilise third party software systems as part of our service delivery to you, such as Xero, Class, DropBox Sign and Dropbox. Some of these systems store data on servers domiciled in the United States of America. At all times, your data is under our control, and we have taken all reasonable measures to protect your privacy.

 

Ongoing Services

31. The list of services that we are offering under these Standard Terms of Engagement.

a. Preparation of Financial Statements (Statutory and Management)

b. Taxation Returns, including FBT

c. Goods and Services Tax and Activity Statements

d. Corporate Compliance

e. General Accounting and Budgeting

f. Business Services, Structuring and Advice, including Payroll

g. Personal Services, Structuring and Advice

32. Our Standard Terms of Engagement will be effective for future years and are subject to change from time to time and will be updated on our website.

33. State taxes, including payroll tax and land tax, are excluded from our services, unless specifically listed in your personalised engagement letter.

34. Employment related services, such as workers compensation, employment leave entitlements and Long Service Corporation, are excluded from our services, unless specifically listed in your personalised engagement letter.

 

Tax Practitioners Board – Information for Client Fact Sheet

35. We are obligated to make you aware and provide you a copy of the Tax Practitioners Board – Information for
Clients Fact Sheet. The details of the fact sheet can be found here.

 

Last updated: 4 February 2026